The thing is about Grogu, which they've written themselves into a corner if they want to maintain their own canon, is he's still practically a 'baby' although he was newborn during the events of Ep3 and Mandolorian takes place 10 years after Ep6.
That's 35 years he went from being a newborn to being the human equivalent of being two years old.
So unless he suddenly gets a growth spurt, how are they going to have him in other shows that take place shortly after Mandolorian S2? What significance will he have other than having a short cameo whenever a character goes to meet Luke?
Hell, in another 100 years he'll be the equivalent of a 10 year old. But I'm sure Disney can speed up his lifecycle and development to an extent.